An information technology (IT) expert has claimed that the introduction of wireless connectivity in road vehicles will eventually lead to a reduction in cost of car insurance premiums.

The technology will be costly at first but motorists can expect cheaper cover from their insurance provider, according to Andrew Ferguson, editor of IT consultancy thinkbroadband.

Mr Ferguson added that the use of satellite navigation systems saves fuel, meaning that the technology could effectively pay for itself.

"The early roll-outs of collision avoidance in cars and other uses are going to be expensive initially, but once some of the initial development costs are recouped we will see much more attractive pricing," he said.

Recently, Ofcom completed a report entitled Tomorrow's Wireless World, which looked at the use of technology in the future.

The watchdog predicted that by 2015 cars will be fitted with intelligent transport systems which would utilise wireless technology to allow them to communicate with each other and reduce the risk of an accident.

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